The Hot Spot Studios charges a royalty fee of 5.0% of gross sales (2025 FDD). This ongoing fee is typically paid weekly or monthly to the franchisor for continued use of the brand and support systems.

The total ongoing fee rate for a The Hot Spot Studios franchise is approximately 6.0% of gross sales (2025 FDD). This includes the royalty fee, a 1.0% marketing/advertising fund contribution, a $0/month technology fee, and other recurring charges.

The Hot Spot Studios has been involved in 0 litigation cases over the past 3 years (2025 FDD). There are no class action lawsuits pending.

No, the The Hot Spot Studios franchisor has no bankruptcy filings in their disclosure history (2025 FDD).

The Hot Spot Studios offers exclusive territory rights to its franchisees (2025 FDD). The franchise agreement includes encroachment protection, preventing the franchisor from placing another unit in your territory. Online sales are managed by the franchisor, not individual franchisees.

The Hot Spot Studios currently operates 9 locations (2025 FDD) (6 franchised, 3 company-owned). The system grew by 200.0% over the past year. The 3-year compound annual growth rate is 44.2%.

The 1-year franchisee turnover rate for The Hot Spot Studios is 0.0% (2025 FDD). This includes closures, terminations, non-renewals, and transfers. A lower turnover rate generally indicates higher franchisee satisfaction and system stability.

According to the The Hot Spot Studios FDD Item 19 financial performance representation (2025 FDD), the median gross sales per unit is $468K (average: $551K).

The initial franchise agreement term for The Hot Spot Studios is 5 years (2025 FDD). Franchisees can renew 5 times for 5-year periods. The total potential term is 30 years.

The Hot Spot Studios's post-termination non-compete clause restricts former franchisees from operating a competing business for 2 years within 20 miles of the former location (2025 FDD).

Yes, The Hot Spot Studios's franchise agreement requires mandatory arbitration for dispute resolution (2025 FDD). The agreement includes a jury trial waiver.

The Hot Spot Studios provides 52 hours of initial training over approximately 4 weeks (2025 FDD). The cost of training is covered by the franchisor (travel and lodging are typically the franchisee's responsibility). Ongoing field support is provided on a as-needed basis.

Yes, The Hot Spot Studios provides site selection assistance to help franchisees find the right location (2025 FDD). The franchisor also provides technology support and systems.